Bitcoin recorded its largest decline in a single day since June, falling 3.3% to $103,556. This drastic drop was triggered by Israeli airstrikes targeting Iran, which precipitated a significant liquidation in the cryptocurrency market, amounting to over $1.16 billion in liquidated leveraged positions within just 24 hours.
The selloff began early in the morning as Israeli forces initiated Operation Rising Lion, with Prime Minister Benjamin Netanyahu highlighting the airstrikes’ aim at the “heart” of Iran’s nuclear program, focusing on the Natanz enrichment facility and military assets near Tehran and Tabriz.
This unexpected geopolitical tension influenced financial markets globally, with Bitcoin declining from a 24-hour peak of $108,500 as investors sought to minimize risk amid rising hostilities in the Middle East.
Source: Finance Newso
Liquidation data underscored the panic gripping the market, revealing that long positions suffered the most, with liquidations reaching $1.16 billion compared to a mere $113.97 million allocated to shorts.
Source: Coinglass
The chaotic repercussions of this event were felt almost immediately, with $20 million liquidated within the first hour and nearly $1 billion wiped out within a 12-hour stretch, as automated trading systems and leveraged positions quickly disappeared.
Geopolitical Catalyst Exposes Crypto Market Leverage
The Israeli military action, commencing around 3:30 AM local time in Tehran, exposed the alarming levels of leverage in the cryptocurrency market. What started as a geopolitical conflict quickly escalated into a technical breakdown for many digital assets.
Netanyahu’s declaration that the offensive would persist “for as many days as it takes to remove the threat” added to the uncertainty—stifling any attempt for recovery during the trading day.
Despite the bearish sentiment, cryptocurrencies have historically served as a form of “digital gold” in times of global instability, and if tensions escalate further, this characteristic may play a crucial role.
The remarkable speed and intensity of Bitcoin’s decline, exacerbated by algorithmic trading viewing it as a risk-off asset, swayed sentiment in an already highly leveraged market.
Moreover, Iran’s immediate retaliatory measures, including the launch of approximately 100 drones toward Israel and the declaration of a state of emergency, intensified market anxieties and sustained selling pressure across major cryptocurrencies.
For example, Ethereum (ETH) has experienced an over 8% drop from a weekly high of $2,700 to $2,500, while XRP fell 6%, SOL faced a 9% decrease, and Dogecoin also declined by 9% within the past 24 hours.
This pattern indicates that the selloff was a widespread market phenomenon rather than something isolated to Bitcoin.
Technical Analysis Reveals Bitcoin Might Dip Further
Recent price movements across various timeframes suggest that the geopolitical developments catalyzed technical breakdowns that have been in the making for weeks, pointing to a market vulnerable to external shocks.
The hourly chart displays Bitcoin having decisively broken below critical support at $106,500, including three notable rejection points in the supply zone between $109,500 and $110,500, displaying significant institutional selling pressure.
This bearish breakout pushed Bitcoin past the psychological threshold of $105,000, with the next major support zone hovering around the $100,000 mark.
An assessment of the four-hour chart also uncovered a descending channel that has constrained Bitcoin since it surpassed $112,000. The recent breach below the channel’s lower support line indicates a potential intensification of the bearish trend.
The volume profile showed heightened selling activity coinciding with the geopolitical developments, with the resistance level around $112,000 now appearing insurmountable for any attempted recoveries.
The technical setup suggests that any upward movements would likely be met with renewed selling pressure, as the breakdown of the channel is targeting the $100,000 to $102,000 support zone.
Notably, the Ichimoku rising wedge breakdown evident on the four-hour timeframe indicates that Bitcoin is trading beneath the cloud, reflecting a shift from bullish to bearish momentum.
Rising wedges typically indicate weakening buyer support even in the face of higher prices, and the breakdown from this formation usually leads to pronounced declines, with measured target moves around $96,000.
This target aligns with previous support levels and represents about a 10% decrease from current prices, suggesting further downside risk if geopolitical tensions persist or additional macroeconomic factors exert downward pressure on risk assets.
The post Over $1B Liquidated in 24 Hours as Bitcoin Crashes 3.3%, Worst Day in June 2025 – What’s Happening? appeared first on Finance Newso.
